Micro, Small and Medium Enterprises (MSMEs) in the Indian Economy

Small enterprises exist in the form of factories, workshops, and trade and service organizations, ranging from the simple and traditional to the most modern. The operational range varies from independent enterprises to ancillaries, sub-contractors, and vendors engaged in catering to the needs of the markets, extending from the domestic to the global horizon. These enterprises exist in various forms, such as proprietorship, partnership, companies, or co-operatives. Though the main objectives of small enterprises are almost the same, they are defined and viewed differently in different countries. In India, prior to the enactment of the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006, small industries were comprised of tiny, cottage, traditional, and village enterprises. These enterprises were fragmented across various ministries/departments of the government of India for the purpose of development schemes and concessions. In order to streamline procedures, correct discrepancies, and avoid neglect of certain sectors, the MSMED Act was enacted on June 16, 2006. This Act provides the first-ever legal framework recognizing the concept of 'enterprise' (comprising both manufacturing and service entities), defining medium enterprises, and integrating the three tiers of these enterprises, namely micro, small, and medium. ~This book deals with various aspects of the development of small enterprises in India, including their advantages, performance, and problems. More importantly, it suggests measures which would enhance the competitiveness of small enterprises in order to enable them to compete in the globalized world.